1. INTRODUCTION

The Board of Directors of GDB (“Board”) is pleased to announce that GDB via its newly acquired 70%-owned subsidiary, GDB Geotechnics Sdn Bhd (“GDBGSB”) (formerly known as Eco Geotechnics Sdn Bhd) had on 14 November 2019 accepted the Letter of Award and supplementary agreement from SNA Consult Sdn Bhd [Registration No. 199901001964 (476864-H)], on behalf of Bison Holdings Sdn Bhd [Registration No. 198001001442 (55225-M)] (the “Employer”) dated 13 November 2019 as the Main Contractor to undertake the piling and substructure works for the proposed development of two blocks of serviced apartments, comprising a 36-storey Tower 1 from level 7 to level 36 (565 units) and a 37-storey Tower 2 from level 7 to level 37 (337 units) with a total of 902 units of serviced apartments including a common facilities podium and a six-storey car park located at Hakmilik PN 95919 (Lot 110500), Puchong, Mukim Petaling, Daerah Petaling, Selangor Darul Ehsan for a total contract value of RM20.67 million only (the “Contract”).

The Contract shall commence on 18 November 2019 (“Date of Commencement”) for a duration of 21 months and is scheduled to be completed by 18 August 2021.

Nonetheless, pursuant to the terms of the Contract, the Employer has the right to terminate the Contract after completion of three numbers of bored pile testing with an agreed cost of RM800,000.00.

2. INFORMATION ON THE EMPLOYER

The Employer is a wholly-owned subsidiary of Hua Yang Berhad.

3. RISK FACTORS

There are no foreseeable significant risks other than operational risk associated with the Contract during the contract period. 

4.  FINANCIAL EFFECTS

Barring any unforeseen circumstances, the Contract is expected to contribute positively towards the future earnings of GDB for the duration of the Contract and will not have any effect on the share capital and substantial shareholders’ shareholdings of GDB.

GDB intends to fund the Contract via internally generated funds.

5.  DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors or substantial shareholders of GDB or persons connected to them has any interest, direct or indirect, in the Contract.

6.  DIRECTORS’ STATEMENT

The Board, after due consideration, is of the opinion that the Contract is in the best interest of the Group. The Contract is being entered into in the ordinary course of business and is not subject to the approval of shareholders.

This announcement is dated 14 November 2019.